2014 North American Amendment Proposal to Address HFCs under the
Montreal Protocol

The United States, Canada, and Mexico together submitted a proposal to
phase-down consumption and production of hydrofluorocarbons (HFCs) under the
Montreal Protocol on Substances that Deplete the Ozone Layer in May 2014.
Global benefits of the proposal can yield significant reductions of over 90
gigatons of carbon dioxide equivalent (CO2eq) through 2050.

HFCs are intentionally made fluorinated greenhouse gases used as
replacements for ozone-depleting substances. HFCs are used in the same
applications where ozone-depleting substances have been used: refrigeration
and air-conditioning equipment in homes, other buildings and industrial
operations (~55% of total HFC use in 2010) and in air-conditioning in
vehicles (~24%). Smaller amounts are used in foam products (~11%), aerosols
(~5%), fire protection systems (~4%) and solvents (~1%).

Like the ozone-depleting substances they replace, most HFCs are potent
greenhouse gases. For example, the most commonly used HFC, HFC-134a, is
1,430 times more damaging to the climate system than carbon dioxide. Though
they represent a small fraction of the current total greenhouse gases, their
warming impact is very strong, and their emissions are projected to increase
nearly twentyfold in the coming decades.

If HFC growth continues on the current trajectory, the increase in HFC
emissions is projected to offset much of the climate benefit achieved by
phasing out ozone-depleting substances. HFCs are rapidly increasing in the
atmosphere mostly due to increased demand for refrigeration and air
conditioning, particularly in developing countries, and because they are the
primary substitutes for ozone-depleting substances. HFC emissions increased
by about 8% per year from 2004 to 2008 (UNEP, November 2011). The
President’s Climate Action Plan, announced in June 2013, laid out a goal to
reduce emissions of HFCs via both international leadership and domestic
actions and by acting now under the Montreal Protocol, we could stem the
growth of HFC use and emissions.

The North American Amendment proposal builds on the momentum and
commitments made over the past few years by countries interested in further
action to transition to more climate-friendly alternatives. In February, the
leaders of the three countries expressed strong commitment to “intensify our
efforts to promote an amendment to the Montreal Protocol to phase-down
production and consumption of climate-damaging HFCs.”

The 2014 proposed amendment will first be discussed at a non-decisional
Open-Ended Working Group meeting in July, and then formally at the 26th
Meeting of the Parties to the Montreal Protocol in November.

Today, President Obama reached separate agreements with the G-20 and
with China to combat global climate change by addressing the rapid growth in
the use and release of climate-damaging hydrofluorocarbons (HFCs).

Two statements on HFCs were released today, one in the context of the
G20 Leaders’ Declaration and one bilaterally with China.

First, G-20 leaders expressed their support for initiatives that are
complementary to efforts under the UN Framework Convention on Climate Change
(UNFCCC), including using the expertise and institutions of the Montreal
Protocol to phase down the production and consumption of HFCs, while
retaining HFCs within the scope of the UNFCCC and its Kyoto Protocol for
accounting and reporting of emissions.

This was agreed by the following countries: Argentina, Australia,
Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan,
Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey,the United
Kingdom, the United States, and the European Union, as well as Ethiopia,
Spain, Senegal, Brunei, Kazakhstan, and Singapore.

The G-20 agreement on HFCs reads as follows:

We also support complementary initiatives, through multilateral
approaches that include using the expertise and the institutions of the
Montreal Protocol to phase down the production and consumption of
hydrofluorocarbons (HFCs), based on the examination of economically viable
and technically feasible alternatives. We will continue to include HFCs
within the scope of UNFCCC and its Kyoto Protocol for accounting and
reporting of emissions.

Second, building on their June 8 accord on HFCs in Sunnylands, President
Obama and President Xi agreed at their bilateral meeting as a next step on
HFCs to establish a contact group under the Montreal Protocol to consider
issues related to cost-effectiveness, financial and technology support,
safety, environmental benefits, and an amendment to the Montreal Protocol.

The agreement between President Obama and President Xi on HFCs
reads as follows:

We reaffirm our announcement on June 8, 2013 that the United States and
China agreed to work together and with other countries through multilateral
approaches that include using the expertise and institutions of the Montreal
Protocol to phase down the production and consumption of HFCs, while
continuing to include HFCs within the scope of UNFCCC and its Kyoto Protocol
provisions for accounting and reporting of emissions. We emphasize the
importance of the Montreal Protocol, including as a next step through the
establishment of an open-ended contact group to consider all relevant
issues, including financial and technology support to Article 5 developing
countries, cost effectiveness, safety of substitutes, environmental benefits
and an amendment. We reiterate our firm commitment to work together and with
other countries to agree on a multilateral solution.

Background:

HFCs are potent greenhouse gases used in refrigerators, air
conditioners, and industrial applications. While they do not deplete the
ozone layer, many are highly potent greenhouse gases whose use is growing
rapidly as replacements for ozone-depleting substances being phased out
under the Montreal Protocol. Left unabated, HFC emissions could grow to
nearly 20 percent of carbon dioxide emissions by 2050, a serious climate
mitigation concern.

The Montreal Protocol was established in 1987 to protect
the ozone layer. Every country in the world is a party to the Protocol, and
it has successfully phased out or is in the process of phasing out several
key classes of chemicals, including chlorofluorocarbons (CFCs),
hydrochlorofluorocarbons (HCFCs), and halons. The transitions out of CFCs
and HCFCs provide major ozone layer protection benefits, but the unintended
consequence is the rapid current and projected future growth of
climate-damaging HFCs.

For the past four years, the United States, Canada,
and Mexico have proposed an amendment to the Montreal Protocol to phase down
the production and consumption of HFCs. The amendment would reduce
consumption and production and control byproduct emissions of HFCs in all
countries, and includes a financial assistance component for countries that
can already access the Protocol’s Multilateral Fund. The proposal leaves
unchanged the reporting and accounting provisions of the UN Framework
Convention on Climate Change and Kyoto Protocol on HFC emissions.

Reducing
HFCs are an important domestic component of the President’s Climate Action
Plan, as well. For example, the Administration has already acted
domestically by including a flexible and powerful incentive in fuel
efficiency and carbon pollution standards for cars and trucks to encourage
automakers to reduce HFC leakage and transition away from the most potent
HFCs in vehicle air conditioning systems. Moving forward, the Environmental
Protection Agency will use its authority through the Significant New
Alternatives Policy Program to encourage private sector investment in
low-emissions technology by identifying and approving climate-friendly
chemicals while prohibiting certain uses of the most harmful chemical
alternatives. In addition, the President has directed his Administration to
purchase cleaner alternatives to HFCs whenever feasible and transition over
time to equipment that uses safer and more sustainable alternatives.

Today, President Obama and President Xi agreed on an important new step
to confront global climate change. For the first time, the United States and
China will work together and with other countries to use the expertise and
institutions of the Montreal Protocol to phase down the consumption and
production of hydrofluorocarbons (HFCs), among other forms of multilateral
cooperation. A global phase down of HFCs could potentially reduce some 90
gigatons of CO2 equivalent by 2050, equal to roughly two years worth of
current global greenhouse gas emissions.

The agreement between the United States and China reads as
follows:

Regarding HFCs, the United States and China agreed to work together and
with other countries through multilateral approaches that include using the
expertise and institutions of the Montreal Protocol to phase down the
production and consumption of HFCs, while continuing to include HFCs within
the scope of UNFCCC and its Kyoto Protocol provisions for accounting and
reporting of emissions.

HFCs are potent greenhouse gases used in refrigerators, air
conditioners, and industrial applications. While they do not deplete the
ozone layer, many are highly potent greenhouse gases. Their use is growing
rapidly as replacements for ozone-depleting substances that are being phased
out under the Montreal Protocol on Substances that Deplete the Ozone Layer.
Left unabated, HFC emissions growth could grow to nearly 20 percent of
carbon dioxide emissions by 2050, a serious climate mitigation concern.

The Montreal Protocol was established in 1987 to facilitate a global
approach to combat depletion of the stratospheric ozone layer. Every country
in the world is a party to the Protocol, and it has successfully phased out
or is in the process of phasing out several key classes of chemicals,
including chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), and
halons. The transitions out of CFCs and HCFCs provide major ozone layer
protection benefits, but the unintended consequence is the rapid current and
projected future growth of climate-damaging HFCs.

For the past four years, the United States, Canada, and Mexico have
proposed an amendment to the Montreal Protocol to phase down the production
and consumption of HFCs. The amendment would gradually reduce consumption
and production and control byproduct emissions of HFCs in all countries, and
require reporting in these areas. The amendment includes a financial
assistance component for countries that can already access the Protocol’s
Multilateral Fund, and leaves unchanged the reporting and accounting
provisions of the UN Framework Convention on Climate Change and Kyoto
Protocol on HFC emissions.

Accomplishments from the 19th Meeting of the Parties (2007) in Montreal, Canada

Environmental Benefits of the New, Stronger HCFC Phaseout Agreement

At the 19th Meeting of the Parties in Montreal on September 17-21, 2007,
the Parties agreed to more aggressively phase out ozone-depleting
hydrochlorofluorocarbons (HCFCs). The agreement to adjust the phase-out schedule for HCFCs is expected to reduce emissions of HCFCs to the atmosphere by 47 percent, compared to the prior commitments under the treaty over the 30-year period of 2010 to 2040. For the developing countries, the agreement means there will be about a 58 percent reduction in HCFCs emission over the 30 year period.

The climate benefits of the stronger HCFC agreement will depend on technology choices of the transition from HCFCs during the 30 year time frame of the HCFC phase out. The estimated climate benefit of the new, stronger HCFC phase out may be as much as 9,000 million metric tons of carbon dioxide equivalent (MMTCO2eq), or the equivalent of removing the climate emissions from 55 million U.S. passenger cars each year, for the next 30 years. This means the new, stronger HCFC agreement is equivalent to eliminating the annual greenhouse gas emissions from 40 percent of all U.S. passenger cars each year, for the next 30 years.

Another way of explaining the climate benefit of the new, stronger HCFC phaseout agreement is to say it is equivalent to eliminating the climate emissions from the electricity needed by 40 million U.S. households each year, for the next 30 years, which would be eliminating the climate emissions from the electricity needed by 40 percent of U.S. households each year, for the next 30 years.